International rating agency Moody's Investors Service expects inflation in Türkiye to begin to slow in the second half of 2024 but remain high, around 45% by the end of the year, Report informs.

According to Moody's, the outlook on Türkiye's sovereign rating was changed from stable to positive, and the long-term foreign and national currency issuer rating was confirmed at B3.

The agency's analysts highlight notable changes in the country's monetary policy that significantly improve prospects for reducing current very high inflation rates to more sustainable levels.

From June 2023, the Turkish Central Bank has decisively raised its key interest rate by 34 percentage points to 42.5% currently and has signaled some further tightening soon.

Although annual inflation rates are currently very high (annual inflation stood at 64.8% in December 2023) and are likely to continue rising in the near future, inflation has begun to slow on a month-on-month basis, with the latest rate averaging 3.2% per month in October-December, compared with more than 9% in July and August and an average of 4.6% in the first nine months of last year.